On 18 June, following the release of the New South Wales (NSW) state budget on the same day, New South Wales Treasury Corporation (TCorp) revealed a borrowing requirement for the 2019/20 financial year of A$13.3 billion (US$9.1 billion). The requirement represents a A$1.4 billion increase from the estimate at the 2018/19 budget.
On 18 June, Vicinity Centres (Vicinity) (A/A2) began taking indications of interest for a new, six-year, senior-unsecured Australian dollar denominated transaction, offered in either or both fixed- and floating-rate note formats. Indicative price guidance for the forthcoming transaction is 150 basis points area over swap benchmarks.
Macquarie Bank launched a self-led refinancing of the Class A note from its Puma 2014-2 residential mortgage-backed securities (RMBS) deal, on 18 June, with pricing expected on or before 21 June.
On 18 June, Barclays (BBB/Baa3/A) revealed initial price thoughts for a five- and 10-year Australian dollar denominated transaction. The five-year tranche will come in either or both fixed- and floating-rate formats and is being marketed at 225 basis points area over swap benchmarks, while the 10-year fixed-rate tranche is being marketed at 260 basis points area over semi-quarterly swap.
BNG Bank (AAA/Aaa/AAA) launched a minimum A$20 million (US$13.7 million) increase to its April 2029 Kangaroo bond, on 17 June. Indicative price guidance for the forthcoming transaction is 52 basis points area over semi-quarterly swap, equivalent to 63.75 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to joint lead managers RBC Capital Markets and TD Securities.
On 17 June, China Construction Bank Sydney Branch (CCB Sydney) (A/A1/A) launched a new, three-year, senior-unsecured domestic benchmark floating-rate note (FRN) deal. Indicative price guidance for the forthcoming transaction is 98 basis points area over three-month bank bills. Pricing is expected the day after launch, according to joint lead managers ANZ, Bank of China, CCB, Commonwealth Bank of Australia and HSBC.
Issuance in the second full week of June was dominated by National Australia Bank's A$2.5 billion (US$1.7 billion) five-year dual-tranche senior deal, Macquarie Bank's A$2.25 billion multi-tranche senior deal and ANZ Banking Group's A$1.5 billion residential mortgage-backed securities transaction. Two additional taps completed Australian deal activity for the week.